~ Linn Maung ~

China’s dominance in rare earth supply chains has long been recognized. Nearly 90 percent of processed rare earth products worldwide are refined in China, giving Beijing enormous leverage over industries ranging from smartphones and medical devices to electric vehicles and defence systems. What is less widely acknowledged is that much of the raw material feeding this empire originates in Myanmar, particularly in conflict-ridden regions where mining is unregulated and environmentally destructive. These mines are not only poisoning ecosystems but also financing armed groups, deepening Myanmar’s civil war.

The ecological impact is staggering. A recent study by the Stimson Centre identified more than 2,400 unregulated mining sites across mainland Southeast Asia, with Myanmar hosting a significant share. Toxic chemicals such as cyanide, mercury, and arsenic are being discharged into rivers like the Salween and Mekong, threatening water supplies for millions of people. Reports from Global Witness and other watchdogs warn that Myanmar has become the world’s largest source of heavy rare earth elements, with mining concentrated in Kachin and Shan states. These areas are controlled by ethnic armed groups, meaning profits from mining often flow directly into the coffers of militias, perpetuating violence and instability.

The data paints a grim picture. In 2025, satellite imagery revealed 2,420 unregulated mining sites along major river systems in Myanmar, Laos, and Cambodia. The Mekong River, which sustains nearly 70 million people, is now at risk of irreversible contamination. In Myanmar’s Kachin State, rare earth mining has stripped forests, polluted soil, and poisoned water sources, leaving communities with rising health problems and collapsing agricultural livelihoods. Workers recruited by Chinese companies in Shan State report earning up to $1,400 a month, but at the cost of exposure to toxic substances and unsafe working conditions. These figures underscore how the pursuit of rare earths for global technology is exacting a heavy toll on local populations.

Behind this ecological devastation lies a clear geopolitical motive. China has deliberately scaled back domestic rare earth extraction, shifting the dirtiest parts of the supply chain to Myanmar. This outsourcing allows Beijing to maintain its global dominance in refining and processing while avoiding the worst environmental consequences at home. By fuelling mining operations in Myanmar, the Chinese government ensures a steady flow of raw materials while simultaneously strengthening its influence over ethnic armed groups that control mining territories. This strategy not only secures resources but also destabilizes Myanmar, keeping the country weak and dependent.

The ulterior motives of the Chinese government are evident. Rare earths are critical for Beijing’s ambitions in clean energy, defence, and high-tech industries. By monopolizing supply chains, China can exert pressure on rivals like the United States and Japan. At the same time, by embedding itself in Myanmar’s conflict economy, Beijing gains leverage over a strategically located neighbour. The CCP’s approach is not simply about minerals, it is about power projection, ensuring that Southeast Asia remains within China’s sphere of influence.

For Myanmar, the consequences are dire. Communities are caught between ecological collapse and armed conflict, with little recourse to justice. Rivers poisoned by mining runoff threaten food security across borders, affecting Thailand, Laos, and Cambodia. The civil war is prolonged as mining revenues fund militias, undermining any prospects for peace. And yet, global demand for rare earths continues to rise, driven by the push for clean energy technologies. The irony is stark: the minerals enabling wind turbines and electric cars are being extracted in ways that devastate the environment and fuel violence.

South Korea, Japan, and the United States are watching closely. As nations seek to diversify rare earth supply chains, Myanmar’s plight serves as a cautionary tale. Without stronger international oversight and investment in sustainable alternatives, the world risks entrenching China’s dominance while allowing ecological disasters to unfold unchecked. The Lee administration’s concerns about espionage may be mirrored here: just as China infiltrates foreign militaries, it infiltrates resource economies, bending them to its strategic will.

Rare earths are indispensable to modern technology, but their extraction in Myanmar reveals the hidden costs of dependence on China. Ecological devastation, poisoned rivers, and prolonged conflict are the price being paid by vulnerable communities. Meanwhile, Beijing reaps the benefits, consolidating its empire of rare earths and using it as a tool of geopolitical influence. The world must confront this reality: clean energy cannot be built on dirty foundations.

Sources:

https://www.newsbytesapp.com/news/world/mekong-river-pollution-rare-earth-mining-threatens-southeast-asia-s-lifeline/story

 https://timesofindia.indiatimes.com/business/international-business/explained-how-china-gained-rare-earths-dominance-and-what-it-means-for-the-us/articleshow/125588339.cms

https://thediplomat.com/2025/11/unregulated-mining-boom-pouring-toxins-into-southeast-asian-rivers-report/

https://www.dw.com/en/is-rare-earth-mining-putting-the-mekong-river-at-risk/a-74026166

https://e360.yale.edu/features/myanmar-rare-earth-mining

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